Are you claiming the tax reliefs and allowances available to your business?

Between a global pandemic, an unsettled political landscape and now a cost-of-living crisis, the last couple years has been undeniably difficult for businesses.

If you’re one of the many organisations struggling, please be rest assured that there’s plenty of support available.

HMRC is actively encouraging business owners, employers and the self-employed to ensure they’re not missing out on money-saving tax reliefs and allowances. Please head to the gov.uk website where you’ll find a summary of the help available, who’s eligible and how to make a claim.

A summary of tax reliefs and allowances available to businesses

Tax-deductible business expenses

• If you’re self-employed, you can deduct some of your running costs as part of your annual tax return, provided they’re an allowable expense.
• You may be able to claim tax-deductible expenses for items including office stationery, insurance, bank charges and even heating and lighting for your office, home office or business premises.

Research and Development (R&D) tax credits

• If your company is involved in innovative projects in science or technology, you may be eligible to claim R&D reliefs which can even be claimed on unsuccessful projects.

Gift Aid

• Companies (and unincorporated associations) can claim tax relief for qualifying donations paid to charities (bodies or trusts accepted as charities for UK tax purposes).

Corporation Tax relief

• You can deduct the costs of running your business from your profits before tax when you prepare your company’s accounts. This may include things such as machinery or tools that you use for your business.

Employment allowance

• If your business employs people, you may be able to claim Employment Allowance which allows eligible employers to reduce their annual National Insurance liability by up to £5,000.

Pre-trading expenses

If you’re in the process of setting up a new business, you may be able to claim back some of the expenses incurred before you started trading through your first tax return.

Reclaiming VAT

• If you’re a VAT-registered business, you can reclaim VAT on qualifying goods and services you buy for use in your business.

Business rates relief

Some properties are eligible for discounts from their local council on their business rates. This is called ‘business rates relief’. Please note that the guidance on business rates relief on GOV.UK is only for businesses based in England.

To find out more about the tax reliefs and allowances your business may be entitled to, please head to the gov.uk website. Alternatively, get in touch with PKB and one of our expert advisors will be more than happy to help.